case study on coca-cola. introduction, segmentation targeting and positioning . selling strategy, marketing planing, objective, swot analysis of the company.
THIS IS AN ANALYTIC REPORT ON THE FUNCTIONS OF FINANCIAL MANAGER OF PEPSICO. THIS IS GIVEN IN CONTEXT WITH EACH FUNCTION OF A FINANCIAL MANAGER. EVRYTHING THEORITICAL THING HAS BEEN MENTIONED WITH LIVE AND PRACTICAL EXAMPLES FROM PEPSICO INC. ORGANISTATION .
HOPE IT WOULD BE BENEFICIAL TO YOU.
A ppt on PepsiCo. It includes sales and distribution management, Inventory management, production, transportation and logistics, Material Handling, warehousing, Supply chain management, Organizational Structure, Processes and Supply flow of materials used for the production.
case study on coca-cola. introduction, segmentation targeting and positioning . selling strategy, marketing planing, objective, swot analysis of the company.
THIS IS AN ANALYTIC REPORT ON THE FUNCTIONS OF FINANCIAL MANAGER OF PEPSICO. THIS IS GIVEN IN CONTEXT WITH EACH FUNCTION OF A FINANCIAL MANAGER. EVRYTHING THEORITICAL THING HAS BEEN MENTIONED WITH LIVE AND PRACTICAL EXAMPLES FROM PEPSICO INC. ORGANISTATION .
HOPE IT WOULD BE BENEFICIAL TO YOU.
A ppt on PepsiCo. It includes sales and distribution management, Inventory management, production, transportation and logistics, Material Handling, warehousing, Supply chain management, Organizational Structure, Processes and Supply flow of materials used for the production.
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Abdul Hadi Anwar Siddiqui
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Undertook a Business Research project in the second year of my undergraduate degree on the topic- Comparative Analysis between Pepsi and Coca Cola on the basis of various physical and chemical aspects.
ASSIGNMENT
Company descriptions
The Crazy soda Co. Organization is an American multinational nutrition organization and maker, retailer, and sponsor of nonalcoholic beverage syrups, headquartered in Atlanta. The organization's Crazy soda brand constitutes its fundamental product offering, made out of its determination of 15 Crazy soda flavors and a few item augmentations of its Crazy soda line, including without sugar variants of its Crazy soda line which will be contending in the option refreshment market. Crazy soda Co.’s items are sold in 39 states in the United States and in seven territories in Canada. As individuals are turning out to be more cognizant about the need of crisp & clean items, additionally the drink business is developing moving from items with distinctive additives toward more normal and sound items. Crazy soda is a divine, common and reviving utilitarian drink that is enhanced with the appropriate measure of vitamins and other useful fixings to permit the buyer to beat the step by step difficulties of an occupied work, both from physical & psychological point of view. Our point is to help our shoppers grasping existence with execution and joy: improve consistently, less changing so as to demand and all the more performing the way people groups are drinking. We convey refreshment and amiability to a great many individuals everywhere throughout the world who make the most of our beverages. We work together in a manner that enhances jobs and constructs groups. The drinks will be sold basically through free wholesalers to accommodation stores, shops, and grocery stores, however the organization likewise utilizes a "direct to retail" business technique, offering its refreshments specifically to retailers. Toward this end, Crazy soda Co. have come to understandings to offer its refreshments in stores worked by Barnes & Noble, Panera Bread Company, Cost-plus World Markets, and Starbucks Coffee Company.
Industry Analysis and Trends
The non-alcoholic beverage industry extensively incorporates soda pops and hot beverages. The soda class rules the business and incorporates carbonates, juice, filtered water, prepared to-drink tea and espresso, and games and caffeinated beverages. Soda pops are now and again alluded to as liquid nourishment beverages.
The worldwide soda pop market is driven via carbonated sodas, which had a business sector size of $337.8 billion in 2013. Around the same time, CSDs were trailed by filtered water, with a business size of $189.1 billion, and juice, with a business sector size of $146.2 billion (Bailey, 2014). In a later piece of this arrangement, we'll talk about why CSDs have been losing prominence, and why offers of different refreshments, including squeezes and prepared to-drink tea, are expanding.
Changing client needs and presentation of new flavors and item variations are the central point driving interest for non-alcoholic beverages. With vast number of up and coming busines ...
Fils-Aime 13
Valdirene Fils-Aime
Michael Matvichuk
CMGMT 4140 -- Strategic Management
Project: Five-Step Strategic Management Plan Analysis
Coca-Cola Company in the beverages industry
Step I. Corporate Mission and Goals
Brief history of the background and evolution of the organization
Coca-Cola Company is the manufacturer of Coke or Coca-Cola soft drinks. The company was founded in 1886 by John Pemberton. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Although John Pemberton invented Coca-Cola, which is a carbonated soft drink, he later sold it to businessman Asa Griggs Candler, whose smart marketing tactics made the soft drinks to dominate the world of beverages in the entire 20th century. During the introduction stage into the market, the company used to sell nine drinks in Atlanta per day, but currently it is selling more than 19400 beverages every second around the globe (Moran). Its advertising strategies have changed to reach greater markets. Today Coca-Cola is one of the best-known brands around the world. However, when the company started, it used free coupons to promote its product. When Griggs Candler acquired the company, his budget to promote the product was $11,000. In 2011, the company allocated $4 billion for the marketing of its products (Moran). Also, over the decades the bottling of the beverages has changed to differentiate it from other close substitutes. These changes have also been seen in the company logos.
Mission and Vision
Coca-Cola has aimed to maximize its profit while keeping long-term sustainable growth in the beverage industry. The mission statement of the company states that it aims to refresh the world, inspire the moments of happiness and optimism, and create value and build a difference in the world. The vision of the company is their road map and acts as a guide to every aspect of their business by explaining what ought to be accomplished to achieve sustainable and quality growth around the world. It appears that the vision of Coca-Cola consists of 6 P’s which are people, portfolio, partners, planet, profit, and productivity. The company’s values include integrity, collaboration, accountability, diversity, leadership, passion, and quality (“Mission, Vision & Values”). The winning culture of the company explains its behaviors and attitudes that will make their vision 2020 a reality.
General Structure and Leadership Style
The organizational structure of the company is structured in such a way that it operates smoothly, and the growth of the company is enhanced. The company is composed of fifteen board members who include the CEO of the company James Quincey. The board members are all divided, and each of the board heads several other committees. Currently, the company is now divided into three regional groups, which include ...
The project is about "the study of the acceptance of Brand Tropicana Slice Alphonso in Banglore market", the report includes the industry profile, PepsiCo world, PepsiCo India, business model, financial statements, problem centered study, customers of pepsico, business segments, distribution channel and so on........
Running head BUSSINESS PLAN DRAFT1BUSSINESS PLAN2Bu.docxsusanschei
Running head: BUSSINESS PLAN DRAFT
1
BUSSINESS PLAN
2
Business Plan Draft
BUS 599
Avery Clementin
Dr. Daniel Goldsmith
November 29, 2016
TABLE OF CONTENTS
COMPANY DESCRIPTION AND SWOT ANALYSIS 3
COMPANY NAME AND SIGNIFICANCE 3
WEFIT’S COMPANY MISSION STATEMENT 3
TRENDS IN THE NON-ALCOHOLIC BEVERAGE INDUSTRY 3
WEFIT’S STRATEGIC POSITION 4
OVERVIEW OF WEFIT’S DISTRIBUTION CHANNELS 5
RISK ANALYSIS OF WEFIT COMPANY 5
SWOT ANALYSIS 6
MARKETING PLAN AND SALES STRATEGY 6
SALES STRATEGY 7
COMPANY’S TARGET MARKET 8
ANALYZE THE TYPES OF CONSUMERS 8
COMPANY’S MARKET COMPETITION 10
COMPETITION FACTORS 11
JUSTIFICATION OF COMPANY STRATEGY 11
WEFIT DIET DRINK FIVE FS 12
ETHICS AND SOCIAL RESPONSIBILITY 13
COMMITMENT OF THE COMPANY 13
EFFECTS OF WEFIT ACTIVITIES ON THE ENVIRONMENT AND HOW TO MITIGATE THEM 13
CHOICE OF PACKAGING 13
DISPOSAL OF BOTTLES 14
HEALTH ISSUES 14
COMPANY’S PLAN TO REACH THE APPROPRIATE MARKET 15
BUSINESS PLAN FINANCIALS 15
STRATEGIC FINANCIAL PLANNING TECHNIQUES 15
BUDGETING 16
PRICING ANALYSIS 16
EVALUATING COSTS 16
CASH FLOW MANAGEMENT 17
PERFORMANCE ANALYSIS 17
REFERENCES 18
Company Description and SWOT Analysis
Company Name and Significance
The name of my Non- alcoholic beverage (NAB) company is WeFit Diet Drinks. This company deals with the production and the manufacturing of the non-alcoholic beverages that have zero calories content. The significance of this beverage is to provide soft drinks to the people who enjoy the various tastes of different sodas, but they are no longer willing to indulge in drinks that have the calories as a measure of ensuring a healthy lifestyle. This company will provide drinks with different flavors just like the other sodas. These drinks will aid in meeting the needs of the people who have decided to adopt healthy lifestyles such as avoiding the high-calorie content drinks.
WeFit’s Company Mission Statement
The mission statement of the WeFit Diet Drinks is to ensure the provision of sophisticated and inviting diet soft drinks that do not mislay the authenticity of the people health habits. As a company, we are committed to ensuring that we meet the various needs of our customers through the provision of high-quality products, to ensure that they are satisfied and also provide a high level of professionalism. In addition to this, we are also aiming at making a difference and ensuring the creation of value as a company.
Trends in the Non-Alcoholic Beverage Industry
One of the trends in the non-alcoholic beverage industry is that there is a revolution whereby the sugary drinks and juices sales are likely to slip. This is a result of the increasing need for the development of new and healthy beverages and other brands that are much healthier than the prevailing ones. In the developed countries, many people have become more sensitive to health ...
PepsiCo Situation Analysis
Team: C10
Table of Contents
Executive Summary…………………………………………………………………………….1
Company Description…………………………………………………………………………..2
Mission and Goals…………………………………………………………………....2-3
PepsiCo SWOT Analysis………………………………………………………………………3
PepsiCo’s Strengths……………………………………………………………………4
PepsiCo’s Weaknesses………………………………………………………………..5
PepsiCo’s Opportunities……………………………………………………………….5
PepsiCo’s Threats……………………………………………………………………...6 Coca Cola SWOT Analysis…………………………………………………………………….
Coca Cola’s Strengths…………………………………………………………………..
Coca Cola’s Weakness………………………………………………………………...
Coca Cola’s Opportunities……………………………………………………………..
Coca Cola’s Threats……………………………………………………………………. Dr Pepper Snapple GroupSWOT Analysis……………………………………………………..
Competitor’s Strengths………………………………………………………………….
Competitor’s Weakness………………………………………………………………...
Competitor’s Opportunities…………………………………………………………….
Competitor’s Threats…………………………………………………………………...
Customer Analysis………………………………………………………………………………. Market & Product Objectives…………………………………………………………………...
New Product……………………………………………………………………………..
Perceptual Map…………………………………………………………………………..
Appendix…………………………………………………………………………………………..
Works Cited……………………………………………………………………………………….
EXECUTIVE SUMMARY
Company Description
PepsiCo has been around about 85 years. The merger of two companies, Pepsi-Cola and Frito-Lay, created PepsiCo. This allowed PepsiCo to expand outside of the beverage market and into snack brands with chips like the original Frito-lays and additions like the Cheetos brand in 1948. As well, as the creation of the Doritos brand in 1966 which was estimated to become the most popular snack chip in the United States (PepsiCo, Our History 2016). In later years PepsiCo continued expanding by acquiring different chip and snack manufacturers as well as merging or partnering with other beverage companies to help expand both nationally and globally. PepsiCo is now a multi-billion dollar company listed on the stock exchange.
Mission and Goals
PepsiCo mission statement :
“As one of the largest food and beverage companies in the world, our mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth” (PepsiCo,Our Goals 2016).
PepsiCo has redefined their mission over the years as they expect to continue to grow and expand to different markets. They reinforce their mission statement with their goals. Their goals are to create a healthier relationship with food while conti.
Running head HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLA.docxcowinhelen
Running head: HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLAN
1
HUDSON VALLEY SWEET CIDER CORPORATION BUSINESS PLAN
2
Hudson Valley Sweet Cider Corporation Business plan
Stanley Pierre-Charles
Professor Prakash Menon
Strategic Management
8/28/2016
Company Description
Company Name
The Hudson Valley Sweet Cider Corporation will be the name of the company, which will specialize in the production of sweet cider. Sweet cider also commonly referred to as apple cider is an unsweetened nonalcoholic beverage common in the United States and parts of Canada made from apples. The name Hudson Valley Sweet Cider Corporation is derived from the name of location from where most apples used in the production are sourced. New York State is the leading producer of apples in the United States. Production is concentrated in six areas namely, Eastern and Western Hudson Valley, Champlain Valley, Central, Lake Country and Niagara Frontier.
The Hudson Valley region has a long history of wine making and cultivation of grapes dating from 1677 (New York Apples). As a result there are many wineries located in the area. Wine tasting tours and wine festivals and other related events are common and for this reason, the name will attract many wine lovers who associate Hudson Valley with good wine. The company will also benefit from publicity by showcasing its products at these events.
Mission Statement
To provide safe and affordable sweet cider to millions of people in North American cities and beyond to unleash the health benefits of apple cider and in the process support apple growing in upstate New York. The company will supply high quality products at moderate prices to support a profit for the company and the farmers in the supply chain and creates hundreds of quality jobs across the entire value chain. I want my company to provide a healthy beverage for a happy and healthy society. This mission is to ensure that the company has remained focused in the production of quality beverage. The mission statement also indicates that it is aimed to make sure that the society is composed of healthy people who consume healthy drinks. When the society has healthy people, it means that they will be able to be productive, and their lives will be enjoyable, and they will live happily (Olson, Lopez, 2009).
The mission statement also shows that the company is taking into consideration the wellbeing of the society and its customers. The company has demonstrated that it is customer centered meaning that its activities will be focused and ensuring the welfare of the clients and their satisfaction has been achieved. The mission statement is therefore paramount for the company. If the company follows and honors its mission statement, it will be able to meet its goals and objectives.
Reasons for Choosing This Beverage
The choice was made after critical consideration of the environment and the population in the market. The demand for non-alcoholic beverages which are ...
The Presentation is about :
- Coca Cola Comapny
- Internal & External factors analysis
- Strategic decision matrix
- Coca Cola's Strategy
This Presentation done as a part of MBA class assessment in 2010
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
1. Pepsi CO. Executive Summary
The purpose of this marketing plan is to develop an understanding about how
PEPSI is marketed and distributed in the market (Product, Price, Promotion and
Distribution). In this project different analysis are performed such as,
Companyimage, mission statement, goals & objectives, core business areas, SW
OTAnalysis, Industry Analysis, Marketing Program, target markets, MarketingStr
ategy, Marketing Environment, Point of Differences& Positioning
At the end it was discussed that what are the core marketing strategies that make PEPSI the
morepowerfulbrand.
Company History
PepsiCo Inc. is an American multinational food and beverage corporation headquartered
in Purchase, New York, United States, with interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed
in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a broader range of food and beverage
brands, the largest of which includes an acquisition of Tropicana in 1998 and a merger
with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.
As of January 22, 2012 PepsiCo's product lines generated retail sales of more than $1 billion
each, and the company's products were distributed across more than 200 countries,
resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the
second largest food and beverage business in the world. Within North America, PepsiCo is
ranked (by net revenue) as the largest food and beverage business.
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the
company employed approximately 274,000 people worldwide as of 2013. The company's
beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in
certain regions. PepsiCo is a SIC 2080 (beverage) company.
Headquartered in Purchase, New York, with research and development headquarters
in Valhalla, New York, PepsiCo's Chairman and CEO is Indra Nooyi. The board of directors
is composed of eleven outside directors as of 2010, including Ray Lee Hunt, Shona
Brown, Victor Dzau, Arthur C. Martinez, Sharon Percy Rockefeller, Daniel Vasella,Dina
Dublon, Ian M. Cook, Alberto Ibargüen, James J. Schiro and Lloyd G. Trotter. Former top
executives at PepsiCo include Steven Reinemund, Roger Enrico, D. Wayne Calloway, John
Sculley, Michael H. Jordan, Donald M. Kendall, Christopher A. Sinclair and Alfred Steele.
On October 1, 2006, former Chief Financial Officer and President Indra
Nooyi replaced Steve Reinemund as Chief Executive Officer. Nooyi remained as the
corporation's president, and became Chairman of the Board in May 2007, later (in 2010)
being named No.1 on Fortune's list of the "50 Most Powerful Women" and No.6 on Forbes'
list of the "World's 100 Most Powerful Women". PepsiCo received a 100 percent rating on
the Corporate Equality Index released by the LGBT-advocate group Human Rights
Campaign starting in 2004, the third year of the report.
2. Company background
Name PepsiCo Inc.
Industries served Beverages, Food
Geographic areas served Worldwide
Headquarters U.S.
Current CEO Indra Nooyi
Revenue $ 65.492 billion (2012)
Profit $ 6.178 billion (2012)
Employees 297,000
Main Competitors
The Coca-Cola Company, Dr Pepper Snapple Group, Inc.,
Mondelez International, Inc., Hansen Natural Corporation,
National Beverage Corp., Kraft Foods Inc., The Kellogg
Company, ConAgra Foods, Inc., Nestlé S.A. and others.
PepsiCo is a world leader in convenient snacks, foods and beverages.
Industry Analysis of the Beverages Market
Soft drinks can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges
are carbonated drinks category. The carbonated soft drink market has been challenged by a
health consciousness movement within American consumers. Health consciousness is a very
strong growing trend in America, and has created an organic movement within the drink and
food industries. Within the last five years ending in 2006, the soft drink market in the United
States has experienced 0.0% growth due to this factor.
Since 1975 the overall growth rate of soft drink market has been slowing. (Figure_1) As this
provides a constraint on new market opportunities, it does not constrict maintaining a similar
level of revenue or slightly improving it. As the current consumer market continues to age, it is
expected there exists a certain level of retention to Pepsi consumption until a specific age when
it is recommended by a doctor not to consume a soft drink. Given Pepsi’s position in terms of
product placement within demographics, it holds the youth market when compared with Coke.
As growth slows, the youth markets must continually be targeted to maintain the consumption
level of Pepsi as new consumers enter the market of soft drink consumption, and other age out
of it. This strategy will over a long period of time prove to gain market share of domestic soft
drink consumption over Coke, while being offset by a slowing of the overall consumption.
3. Figure 1
The subject proposal is targeted to use a pull
strategy through the distribution channels,
and is therefore focused on the end user, or
consumer segment of the market.
Notwithstanding, the industry overall
(primarily Pepsi and Coke as outlined herein
below) does not only sell directly to
consumers. A very prevalent distribution
channel is through licensed bottlers and
restaurant chains. A very strong business to business transactional distribution channel
exists in the soft drink industry, and in fact 22.6% of all soft drink volumes are sold in a syrup
for fountain soda. This is 100% business to business within the scope of these transactions.
The remaining 77.4% of packaged soft drink volume comprises primarily of business to
business transactions to retailer and bottling companies. (Figure_2) While PepsiCo
Beverages North America does not directly sell to consumers primarily, the subject proposal
will stimulate demand for the product at the end user level, and therefore result in more
business to business sales in order to meet that demand.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
U.S. Soft Drink Market
Compounded Annual Growth
Figure 2
4. PepsiCo Inc. and Coke-cola Co. have dominated the
carbonated soft drink industry in North America since
they first entered this market. They continue to compete
with each other for market share for centuries. Therefore,
some experts conclude that the soft drink market is an
oligopoly or even a duopoly between Pepsi and Coke.5
By the year of 2006, PepsiCo has the leading share
(26%) of U.S. liquid refreshment beverage market,
followed by Coca-Cola which has taken 23% of market share as indicated in the left chart.
Cadbury Schweppes, another big rival on the bottled soft drink shelves, obtained 10% by
acquiring key brands in the US, namely Dr. Pepper, Seven Up, and Canada Dry. Throughout
2012, soft drinks in Malaysia continued to experience healthy growth in terms of value and
volume sales. The country’s climate contributes heavily to the strong demand for soft drinks
as the constant hot weather leads to higher consumption of these drinks for the purpose of
quenching thirst. Soft drinks, such as carbonates and RTD tea, are also purchased during
festive seasons and are served to guests. Lastly, soft drinks, such as carbonates, RTD tea
and Asian specialty drinks, are also sold across major on-trade channels, including mamak
stalls, hawker centers and food courts. In line with the growing health consciousness in the
country, non-carbonate soft drinks perceived as “healthy”, such as fruit/vegetable juice and
RTD tea, are being embraced by consumers over carbonates, including Coca-Cola and
Sprite. Unfrozen nectars are available in many varieties, some even with a super fruit
content or no added sugar. Hence, consumers often perceive these to be a healthier choice
compared to carbonates, which often contain a lot of sugar. Thus, in 2012 consumers began
slowly switching to non-carbonated soft drinks, including RTD tea as well as no added sugar
fruit/vegetable juice products. F&N Beverages maintained its leading position within soft
drinks during 2012 supported by the strong performance of its brands in Malaysia, such as
100 Plus Isotonic drinks, F&N Fun Flavours carbonated drinks, Sunkist fruit/vegetable juice,
as well as Seasons Ice Lemon Tea. Moreover, its consistent marketing and promotional
activities also helped the company to establish a significant level of brand awareness. For
instance, the 100 Plus brand was the sponsor of the Ipoh Star Walk sporting event
organized in Malaysia during 2012, where free 100 Plus drinks were given out to participants
throughout the event. Modern distribution channels, such as supermarkets, hypermarkets,
forecourt retailers and convenience stores, combined, dominated sales of soft drinks in
2012. A large number of supermarkets and hypermarkets, such as Giant, Tesco and
Carrefour, organized promotional campaigns for soft drinks, particularly carbonates, which
5. helped to attract a large number of customers. Moreover, smaller PET bottles, cans as well
as Tetra Pak packaging demonstrated a stronger sales performance via smaller distribution
channels, such as convenience stores and forecourt retailers, as consumers often purchase
a soft drink in bottles or cans from these outlets for convenience purposes.
SWOT analysis
Strengths Weaknesses
Branding and packaging
Appealing to young generation
Superior Taste (in Blind Tests)
Many distributions
Hard to enter markets occupied by
Coca-Cola
Lack of novelty in advertising
Opportunities Threats
Global markets
Additional Youth Consumers entering
the market
Health Conscious Consumer Trends
More substitutes
“Manifesting brand essence through packaging is powerful at retail,” declares Ron Pence,
Pepsi Senior Marketing Manager for packaging innovation. Youth and vitality is the main
idea that the Pepsi brand tries to express, and the bottle design helps the brand associate
with teens at the age between 12 to 18 year old. Pepsi restyles its cans with a series of 35
new designs and different themes such as car culture, sport or fashion. On Pepsi website,
each theme has its own video clips which can be downloaded for free and other features to
attract consumers with the purpose of representing the “fun, optimistic and youthful spirit “of
Pepsi. The natural tendency of young generation is to rival with old generations. Pepsi also
use “music, which was traditional weapon of teenager to show their rebellion approach”.
Besides, a blind test conducted by Pepsi was performed in shopping malls, grocery stores
and other public locations, in which consumers were asked to pick the soft drink they liked
better, without knowing whether the cola they tasted was Coke or Pepsi. As results came in,
57% of testers chose Pepsi and only 43% chose Coke. It became apparent that Pepsi tastes
6. better than Coke. In addition, Pepsi products are distributed to many outlets. For example,
supermarkets where Pepsi buys large shelf area and display areas so the customer can find
them easier, Convenience stores, gas stations, restaurants, movie theaters and almost and
other conceivable spot.
Pepsi is now sold in more than 160 countries around the globe, but it still has a weakness in
the international beverage market because it entered later into this arena than Coke. Pepsi
has tried to enter this market by trying to do in three years what took Coke 50 years to do.
Nevertheless, Pepsi has to spend years “to mature simply due to Coke’s dominance in the
international market and the strong ties that Coke has developed with these markets and
their governments.” Additionally, when marketing its products, Pepsi utilize celebrity
endorsement mostly which bored some consumers due to lack of novelty. Conversely, the
success of fresh and creative advertise has consistently helped Coco-Cola attract and retain
customers.
The world is becoming a smaller place with investors thinking in terms of sectors rather than
geographic boundaries. Broad global markets, like China, India, can provide lots of
opportunities for Pepsi. We may conclude from the tables on the right that in 2004, 63%
PepsiCo’s profits come from
the United States 8, and in the
same year, the U.S. holds
30.90% of the global market
share under Europe (showed in
the table below), which means
Pepsi still has opportunities to compete globally. Moreover, as Pepsi targets young
generation, additional youth
consumers enter the market
every year, which provides
Pepsi adequate consumer
base. For these decades,
changing societal concerns,
attitudes, and lifestyles
become important trends that
force the soft drink industry’s business environment to change. Growing health concerns for
caffeine and sugar consumption threatens the carbonated industry. The large amounts of
sugar, fat, and acid contained in cola will lead to heart disease, vascular diseases,
osteoporosis or tooth decay. On the other hand, many other companies have tried to enter
the carbonated industry, but they face high barriers, such as lawsuits and tough competition.
7. Some of these companies end with searching for entering the noncarbonated soft drink
industry for growth. Consequently, some consumers will turn to noncarbonated soft drink,
such as bottled water, teas, instead of soda.
Environmental Scan of today's carbonated beverage marketplace
A quick glance at today’s beverage marketplace indicates an increasing amount of beverage
alternatives in the market. As such, these beverage companies must understand the various
factors that can help them succeed or fail. For instance, the increased awareness of the
importance of health has significant influence on soft drink industry. Since most soft
beverages comprises of unhealthy ingredients including High Fructose Corn Syrup, the
beverage industry faces an incredible threat to their reputation and sales. Therefore,
developing consumer-preferred products that can become an integral element in consumers’
daily lives has become an essential issue for beverage industry.
Possible environmental factors are as follows:
Social environment
In 2004, 28 percent of all beverages consumed in the U.S. were carbonated soft
drinks. In the United States, 450 different types are sold and more than 2.5 million
vending machines dispense them around the clock, including in elementary and
high schools.
As consumers focus more on health and nutritional benefits of food items, it has
sparked a key new driver in trends throughout the beverage industry. The result is
the decrease in sales of carbonated beverages.
Competitive environment
Monopolistic competition: PepsiCo., The Coca-Cola Company, Cadbury Schweppes
The entire beverage industry, including but not limited to bottled water, juice, other
carbonated beverages, and ready-to-drink tea.
Recent growth and demand of sports and energy drinks.
Regulatory environment
In response to weight gaining and health concerns, the nation’s largest beverage
makers -- including Cadbury Schweppes, PepsiCo. and The Coca-Cola Company--
agreed in May 2006 to halt nearly all soda sales in public schools. Beginning in 2009,
elementary and middle schools will sell only water and juice (with no added
sweeteners), plus fat-free and low-fat milk. High schools will sell water, juice, sports
drinks and diet soda. Diet sodas use artificial sweeteners, which add little or no
calories, though some, such as aspartame, have been embroiled in controversy for
years over their questionable health benefits and even possible links to cancer.
8. Obviously, Pepsi is facing not only the transition of customer perception but also the
regulation stress. Besides, it always has it big and powerful competitor, The Coca-Cola
Company. Under this circumstance, strategy and innovation become the top issue of Pepsi.
Competitor Analysis
The table below displays the various brands between PepsiCo. and The Coca-Cola
Company. It appears that for every product on the market from one company, the other
company has an similar product to match it. This demonstrates the intense competitive
nature of both companies to keep up or outwit the competition.
9. Differential Advantage
The Coca-Cola Company has the distinct advantage of being the most recognized brand in
the world. It is considered the classic beverage in the United States as well as in other
countries. In fact, when Coca-Cola decided to change its formula dubbed “New Coke” in
response to Pepsi’s emergence, public outraged roared throughout the nation. Fearing
mass boycott, the original Coke formula was quickly reinstated to satisfy the demands of the
public under the name “Coca-Cola Classic”.
Revered as the classic beverage, Coke enjoys the stature of being the market leader. Coke
appeals to a wide global audience in terms of demographics and popularity. One side effect
of being the “classic” choice leads to a larger share of older consumers.
PepsiCo. appeals to younger consumers with a more sweeter taste compared to Coke.
Pepsi presents itself as the hip and cool alternative choice over Coke. This is evident in the
deep blue hues and patterns that Pepsi takes advantage of in its marketing campaigns.
Pepsi’s younger image is also aided by celebrities endorsement touted by the teen market
including Britney Spears, ‘NSync, along with popular rappers.
Self-proclaimed as “The Choice of a New Generation”, Pepsi devised television commercials
of younger consumers participating in blind taste tests. The participants frequently preferred
Pepsi over Coke. Eventually, PepsiCo. began hiring popular celebrities to promote their
products.
Resource Analysis
The Coca-Cola Company
The Coca-Cola Company’s flagship product, Coke, is sold in stores, restaurants and vending
machines in more than 200 countries. Originally developed as a medicine in the late 19th
century by John Pemberton, it has evolved into a dominating figure in the soft drink market
throughout the 20th century.
The Coca-Cola Company licenses worldwide bottlers who hold territorially exclusive
contracts with the company. Cola concentrate is sold to these bottlers who them produce
the finished cola in cans and glass bottles while using filtered water and various sweeteners.
The finished product is then sold, distributed, and merchandised to retail stores and vending
machines. Coca-Cola Enterprises is currently the single largest Coca-Cola bottler in North
America, Australia, Asia, and Europe. In addition to licensing to bottlers, the company sells
the concentrate to major restaurants and food service distributors for use in fountain drinks.
10. The Coca-Cola Company envision a world in which…They improve the lives in every
community that they touch. They replenish each drop of water that they use. Their packaging
is no longer seen as waste, but as a valuable resource for future use. Workplace rights are
protected and all people are respected. They work in partnership with others to provide good
jobs, world class quality beverages and a healthy environment.
PepsiCo
The Pepsi Cola Company started in 1898 in Purchase, New York. It became known as
PepsiCo when it merged with Frito Lay in 1965. PepsiCo owned Kentucky Fried Chicken,
Pizza Hut, and Taco Bell up until 1997 when they were spun off into Tricon Global
Restaurants – which eventually became Yum! Brands, Inc. In 1998 and 2001, PepsiCo
purchased Tropicana and Quaker Oats, respectively.
PepsiCo, a global American beverage and snack company, manufactures, markets, and
sells a variety of carbonated and non-carbonated beverages, as well as salty, sweet and
grain-based snacks, and other foods. PepsiCo also manufactures Quaker Oats, Gatorade,
Frito-Lay, SoBe, and Tropicana.(Figure_3) In several ways, PepsiCo differs from its
competitor, The Coca-Cola Company, having almost three times as many employees. The
Pepsi Bottling Group was formed for distribution and bottling.
11. Figure 3
Mission Statement:
We aspire to make PepsiCo the world’s premier consumer products company, focused on
convenient foods and beverages. We seek to produce healthy financial rewards to investors
as we provide opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything we do, we strive to act
with honesty, openness, fairness and integrity.
Values:
Sustained Growth is fundamental to motivating and measuring our success. Our quest for
sustained growth stimulates innovation, places a value on results, and helps us understand
whether actions today will contribute to our future. It is about growth of people and company
performance. It prioritizes making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways that we feel will get
the job done, while being consistent with the processes that ensure proper governance and
being mindful of the rest of the company’s needs.
Responsibility and Trust form the foundation for healthy growth. It’s about earning the
confidence that other people place in us as individuals and as a company. Our responsibility
12. means we take personal and corporate ownership for all we do, to be good stewards of the
resources entrusted to us. We build trust between ourselves and others by walking the talk
and being committed to succeeding together.
Based on the pie chart above, PepsiCo and Coca-Cola have roughly the same market share
in the United States.
13. Finacial Analysis Brief Overview
Overall, PepsiCo trumps The Coca-Cola Company in many financial categories – largly in
part from PepsiCo’s wide array of products throughout 4 divisions:
PepsiCo International
Frito-Lay North America
PepsiCo Beverages North America
Quaker Foods North America
14. Egg Diagram
Analysis of the Target Market Consumers
Who are they? Teenagers between age of 12 and 18 in
U.S.
What do they buy? Teens want to buy something real,
something from “corporations that remind
them of themselves”. They don’t want
things that they are thought to like. They
something that pushes the boundary,
different than what they had before.
When do they buy it? When teens find something they can
identify with and have the need that must
be satisfied immediately.
How do they choose? They quickly dismiss the products that look
like some 45-year-old guy trying to sell
them something. They easily recognize the
15. old product that was yesterday’s news.
They can tell what’s being “fake” and
what’s being “real”
Why they prefer a product? They pick a product because they believe
that product can express themselves. They
can relate to someone like themselves
through this product.
How they respond to a marketing
program?
They respond to something catchy. For
example those ads in magazine are
brightly colorful, the flashy graphics
suggest that teens respond well to that
type of ad campaign; in cyberspace they
respond to a space created uniquely for
them. They also respond well to products
on sales.
The target consumer market to stimulate demand within is the young teen market
between the ages 12 through 18 years old, geographically located within the United States.
This segment is compiled of the “Tween” market and the older high school teenagers.
“Tweens develop sophisticated tastes beyond their years, with boys gravitating toward
electronic, Internet, and video games, and girls preferring fashion and social interaction
components” (Abernathy, 2004). With the technology age with computers and increasing
demanding academic environment, tweens and teens have less disposable time, and
therefore product advertising attention is often tuned out. “Tweens spend their own money
today: on average, $9 a week. Some experts estimate tweens have close to $80 a week in
disposable income available to them… Overall, the tween market is valued at $43 billion”
(Abernathy, 2004). Beyond the tween market, the teenage high school student will
sometimes hold a part time job, and have more independent tendencies. All in all, the 2000
U.S. Census estimates the U.S. population between the ages of 10 through 19 years old to
be approximately 40.6 million individuals.
The goal of researching the target consumer is to accurately pinpoint the consumer
behavior in regards to our product. According to our finding, these teens and “Tweens” are
constantly searching for identities at their age. The most effective way of appealing our
product to them is to find a common ground. For example, there are various reasons why
teens and “Tweens” idolize certain celebrity. One of them is that they can find bit and pieces
of themselves in their celebrity idol. After all, who doesn’t like to see himself/herself being a
16. celebrity? So no matter what the product is, as long as it possesses characteristic of the
identity the teens and “Tweens” are searching for, they will make the purchase. The teens
and “Tweens” are still very young. They have very vivid imagination and are highly visual.
Therefore they are attracted to colorful pictures in the magazines. It is usual for them to just
look at the pretty pictures in the magazine without reading the articles that supplement
pictures.
According to the finding, these target consumers prefer products that are “real”. By
“real” they mean the manufacture genuinely create this product specifically for them, at least
it should appears to be. Since Pepsi Cola is basically for everyone, making it appears to be
special to teens and “tweens” are very important. These consumers prefer individuality. Such
preference is reflected in the finding that they are constantly in search for a product that
expresses themselves. The last thing these consumers wants is pressure or stereotype that
sometimes appears on the commercial and magazine ads.
Strategic Action Plan
The strategic alliance with Walt Disney will initially consist of (i) concert support of and
promotions at several of Hannah Montana’s concerts throughout the United States, (ii) Pepsi
promotion via seamless advertisement within the Hannah Montana aired shows by having
characters refresh themselves with Pepsi and also have Pepsi signs in the background, and
(iii) a sparingly aired Pepsi commercial endorsed by Hannah Montana to be promoted via
the ABC channel network (a Disney owned network). A future alliance holds the possibility
of future benefits through Disney media networks and consumption at theme parks and
resorts. The concert support will come with signs at the live shows and events, Pepsi sales
at the concerts, and Pepsi commercial promotions on the concert screens at intermission.
There will also be a special promotional event of Pepsi Challenge tasting at the Pepsi center,
which was previously near sell out for Hannah Montana. The seamless advertisement on
the Hannah Montana show will consist of the characters drinking Pepsi as refreshment in a
natural environment along with Pepsi signs in the background of the sets. This will continue
for two (2) years during the strategic partnership, and be maintained on a very subtle level in
the productions. Twice a year over the two (2) year period ABC (A Disney owned network)
will air a Pepsi commercial of a music video of Hannah Montana singing the Pepsi Theme
song. As part of the strategic alliance, Disney is giving a low market rate for airing over the
network. ABC has been topping the charts with hit series and has been expanding viewer
17. base considerably over the past decade. The Denver Post summarized the market impact
this pop idol holds as:
“When an episode of "Hannah Montana" followed the debut of "High School
Musical 2" this fall, the movie sequel got all the buzz, but the episode of "Hannah
Montana" averaged 10.7 million viewers - the highest ratings for a regular series in
the history of basic cable. The Disney Channel's 90 million subscribers can watch
"Hannah Montana" daily, sometimes as often as seven times a day. An average
2.2 million viewers see each episode. The show also airs weekly on ABC's
Saturday morning block, and is licensed in 177 countries. Of course "HM" is
available around the clock as streaming video on computers and on iTunes.
Compared to the ratings of all shows on U.S. television, "Hannah Montana" is
second only to "American Idol" among kids 6-11 and tweens” (Ostrow, 2007).
Utilizing Walt Disney’s ‘tween’ star Hannah Montana for endorsement will provide
awareness and positive associations with the Pepsi brand of carbonated soft drink. This pop
star idle will build significant brand equity within the demographics of young females
between the applicable ages of 12 through 15 years old. This will predictably improve
vending machine sales at middle schools and high schools, as well as sales at grocery
stores for their respective homes. It will also build repertoire with the respective mothers
who also attend the concerts and watch the shows. The mothers of the daughters are in fact
the ultimate purchasers (and also partially the ultimate consumers in some cases) of the
product, while their daughters are the influencers and ultimate consumers. The daughters of
families will typically have a greater influence over the parents as purchasers in American
families more so than comparable aged boys. This is primarily due to the value system of
the parents to typically spend more attention and money on the daughters of the family, as
young females are seen to need more care. This depicts why Hannah Montana is a highly
effective endorsement for Pepsi within this demographic. This strategic relationship with
Walt Disney will provide the future potential for a stronger partnership with Walt Disney,
thereby opening the possibility of Pepsi consumption within the theme parks and resorts,
while opening a powerful media network to younger audiences for future promotion
channels.
Kanye West will build brand equity in the male teen market between the applicable
ages of 14 through 18 years old. A male target of the upper teen years is deemed more
effective, due to males in their teens practicing habits of independence and having
allowances for spending. His aired TV commercial will be on ABC similar to Hannah
18. Montana, however it will be aired three times a year over the two (2) year period. The
commercial content will be his version of a Pepsi theme.
19. References
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28, 2007 from http://www.pepsico.com/PEP_Company/Overview/index.cfm.
Ostrow, Joanne (Oct. 19, 2007). ‘Disney Wields Its Marketing Magic.’ Denver Post.
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http://www.commercialfreechildhood.org/news/disneyweilds.htm.
Abernathy, R.W. (November, 2004). Tween Market 101. TD Monthly. Retrieved
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